Getting your driver’s license gives you a wonderful sense of independence and freedom; it’s exhilarating when you get to drive by yourself for the first time. However, when the time comes for you to consider purchasing a car, this new reality has many expenses associated with it…the cost of gas, oil changes, tire rotations, auto insurance, and auto loans. But not to worry…plan ahead.
When gaining more independence and making big purchases for the first time, an important first step to keep in mind is budgeting. This will always be important as it lays out your expenses and how much you need to save to reach your financial goals. Nowadays, there are many ways to properly and efficiently keep track of your expenses. You can use a physical notebook or planner. You can use an Excel spreadsheet as well. With online banking, you always get alerts and can easily track your expenses. Keeping track of your expenses allows you to determine how much you need to save.
The next important step is doing the proper research before making your purchases. Relative to the purchase of a car, it is important to compare prices on everything from the actual price of the car to the gas you buy. The first step in buying a car is to find one that is the best quality for the best price. Even though some cars may be way less expensive than others for the initial purchase, the frequent repairs to the less expensive cars may not be worth the price differential.
It is vital to know everything about your vehicle to ensure that you are purchasing a safe and reliable car within your budget and it is important to negotiate the best deal you can. Negotiating is a big part of buying a car, so understanding how to properly do so is very important. Do your research before negotiating.
Next, explore different auto loans and compare your options. Oftentimes, credit unions provide very low rates compared to a bank or a car dealership…and that will put more money in your pocket. Compare the gas prices in your area and go to the gas station with the best price.
Remember, with great purchases comes great responsibility. So do your research and always keep track of your finances. Then go out and enjoy the ride!